Templeton Global Macro. Franklin Templeton Investment Funds Templeton Global Bond Fund - I (acc) USD. Data as of 30 June 2016

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1 Templeton Global Macro Data as of 30 June 2016 Franklin Templeton Investment Funds - I (acc) USD Source for data and information provided by Franklin Templeton Investments, as of the date of this presentation, unless otherwise noted. Benchmark related data provided by FactSet, as of the date of this presentation, unless otherwise noted.

2 Table of Contents Executive Summary...3 Historical Performance...4 Calendar Year Returns...5 Portfolio Characteristics...6 Top Ten Holdings... 7 Geographic Allocation...8 Sector Allocation... 9 Currency Allocation...10 Quality Allocation...11 Duration Breakdown Duration Contribution by Currency Performance Risk Statistics Important Disclosures

3 Executive Summary - I (acc) USD Portfolio Manager(s) Morningstar Category Global Bond Investment Manager Franklin Advisers, Inc. Fund Inception Date 28 February 1991 Share Class Inception Date 30 January 2004 Benchmark JP Morgan Global Government Bond Index Base Currency for Fund USD Base Currency for Share Class USD Total Net Assets (USD) 22,001,556, Asset Allocation Fixed Income: 88.21% Cash & Cash Equivalents: 11.79% Number of Holdings 241 Total Expense Ratio 0.85% Average Duration Yrs Average Weighted Maturity 2.39 Yrs Michael Hasenstab, PhD Sonal Desai, PhD Fund Identifiers ISIN Code Fund Ratings (30 June 2016) LU SEDOL Code Bloomberg Code TEMGBIA LX Overall Morningstar Rating ««««Summary of Investment Objective United States United States The Fund aims to maximise total investment return consisting of a combination of interest income, capital appreciation and currency gains by investing principally in a portfolio of fixed or floating rate debt securities and debt obligations issued by government or government-related issuers worldwide. Morningstar, Inc All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Asset Allocation figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. Average Duration and Average Weighted Maturity reflect certain derivatives held in the portfolio (or their underlying reference assets.) The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details. Past performance is not an indicator or a guarantee of future performance. 3

4 Historical Performance - I (acc) USD Cumulative Performance (%) Inception Date 1 Mth 3 Mths 6 Mths YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs - I (acc) USD Net of Fees JP Morgan Global Government Bond Index A (Mdis) USD Net of Fees Since Incept Annualised Performance (%) Inception Date 1 Yr 3 Yrs 5 Yrs 10 Yrs - I (acc) USD Net of Fees JP Morgan Global Government Bond Index A (Mdis) USD Net of Fees Since Incept All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations. The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, performance may also be affected by currency fluctuations. Please visit franklintempleton.lu for current performance. Performance data may represent blended share class performance, e.g., hybrid created from an A(dis) share class which was converted to A(acc). The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details. 4

5 Calendar Year Returns - I (acc) USD 18% % % 0% % YTD I (acc) USD Net of Fees JP Morgan Global Government Bond Index All performance data shown is in the Fund currency stated and net of management fees. Sales charges and other commissions, taxes and other relevant costs paid by the investor are not included in the calculations. The value of shares in the Fund and income received from it can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator or a guarantee of future performance. Current performance may differ from figures shown. Currency fluctuations may affect the value of overseas investments. When investing in a fund denominated in a foreign currency, performance may also be affected by currency fluctuations. Please visit franklintempleton.lu for current performance. Performance data may represent blended share class performance, e.g., hybrid created from an A(dis) share class which was converted to A(acc). The fund offers other share classes subject to different fees and expenses, which will affect their performance. Please see the prospectus for details. 5

6 Portfolio Characteristics vs. JP Morgan Global Government Bond Index Portfolio Average Credit Quality BBB+ AA Average Duration Yrs 8.07 Yrs Average Weighted Maturity 2.39 Yrs 9.98 Yrs Yield to Maturity 6.33% 0.58% Yield to Worst 6.33% 0.58% Current Yield 5.16% 2.07% Number of Holdings Index Portfolio Quality Allocation 30% % % AAA AA AA- A A- BBB+ BBB BBB- BB+ BB B+ CCC Cash Investment Grade 65.50% Non-Investment Grade 22.71% Cash 11.79% Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Average Duration, Average Weighted Maturity, Yield to Maturity, Yield to Worst and Current Yield reflect certain derivatives held in the portfolio (or their underlying reference assets).. The average credit quality (ACQ) rating may change over time. The portfolio itself has not been rated by an independent rating agency. The letter rating, which may be based on bond ratings from different agencies (or internal ratings for unrated bonds, cash and equivalents), is provided to indicate the average credit rating of the portfolio's underlying investments and generally ranges from AAA (highest) to D (lowest). For unrated bonds, cash and equivalents, ratings may be assigned based on the ratings of the issuer, the ratings of the underlying holdings of a pooled investment vehicle, or other relevant factors. The ACQ is determined by assigning a sequential integer to all credit ratings AAA to D, taking a simple, asset-weighted average of investments by market value and rounding to the nearest rating. The risk of default increases as a bond's rating decreases, so the ACQ provided is not a statistical measurement of the portfolio's default risk because a simple, weighted average does not measure the increasing level of risk from lower-rated bonds. The ACQ may be lower if cash and equivalents are excluded from the calculation. The ACQ is provided for informational purposes only. Derivative positions are not reflected in the ACQ. Yield figures quoted should not be used as an indication of the income that has or will be received. Yield figures are based on the portfolio's underlying holdings and do not represent a payout of the portfolio. Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations ('NRSRO'), such as Standard & Poor's, Moody's and Fitch. The ratings are an indication of an issuer's creditworthiness and typically range from AAA or Aaa (highest) to D (lowest). When ratings from all three agencies are available, the middle rating is used; when two are available, the lowest rating is used; and when only one is available, that rating is used. Foreign government bonds without a specific rating are assigned the country rating provided by an NRSRO, if available. The NR category consists of rateable securities that have not been rated by an NRSRO. Cash includes equivalents, which may be rated. Derivatives are excluded from this breakdown. Weightings as percent of total. Percentage may not equal 100% due to rounding. 6

7 Top Ten Holdings Security Name Country Industry % of Total 1. Government of Mexico, senior note, M, 5.00%, 6/15/17 Mexico Government Securities Government of Malaysia, senior note, 3.394%, 3/15/17 Malaysia Government Securities Korea Monetary Stabilization Bond, senior note, 2.07%, 12/02/16 South Korea Government Securities Nota Do Tesouro Nacional, senior note, 1%, 1/01/17 Brazil Government Securities Korea Monetary Stabilization Bond, senior note, 1.45%, 6/02/18 South Korea Government Securities Government of Indonesia, senior bond, FR56, 8.375%, 9/15/26 Indonesia Government Securities Letra Tesouro Nacional, Strip, 7/01/19 Brazil Government Securities Government of Mexico, 7.25%, 12/15/16 Mexico Government Securities Government of Poland, FRN 1/25/17 Poland Government Securities Government of Poland, FRN, 5.15%, 1/25/21 Poland Government Securities 1.75 Total The Ten Largest Holdings represent the ten largest holdings of the fund as of the date indicated. These securities do not represent all of the securities purchased, sold or recommended for advisory clients, and the reader should not assume that investment in the securities listed was or will be profitable. All portfolio holdings are subject to change. The portfolio manager for the fund reserves the right to withhold release of information with respect to holdings that would otherwise be included in the top 10 holdings list. 7

8 Geographic Allocation Geographic Allocation Active Allocations vs. JP Morgan Global Government Bond Index ASIA ASIA, NON-JAPAN South Korea Malaysia Indonesia India Sri Lanka Philippines Australia JAPAN AMERICAS NON-USA AMER. Mexico Brazil Colombia Peru Canada USA United States EUROPE/AFRICA NON-EMU EUROPE/AFRICA Ukraine Poland Denmark Sweden United Kingdom EMU Portugal Slovenia Belgium France Germany Italy Netherlands Spain SUPRANATIONAL OTHER ST CASH AND CASH EQUIVALENTS ASIA ASIA, NON-JAPAN South Korea Malaysia Indonesia India Sri Lanka Philippines Australia JAPAN AMERICAS NON-USA AMER. Mexico Brazil Colombia Peru Canada USA United States EUROPE/AFRICA NON-EMU EUROPE/AFRICA Ukraine Poland Denmark Sweden United Kingdom EMU Portugal Slovenia Belgium France Germany Italy Netherlands Spain SUPRANATIONAL OTHER ST CASH AND CASH EQUIVALENTS % 4% 14% 24% 34% 44% -44% -27% -10% 7% 24% 41% Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Geographic Allocation figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. 8

9 Sector Allocation Sector Allocation Active Allocations vs. JP Morgan Global Government Bond Index Local Curr. Govt/Agency Bonds Local Curr. Govt/Agency Bonds Investment Grade Investment Grade 7.13 Non-Investment Grade Non-Investment Grade Non-Local Curr. Sovereign Bonds 7.08 Non-Local Curr. Sovereign Bonds 7.08 Non-Investment Grade 6.85 Non-Investment Grade 6.85 Investment Grade 0.23 Investment Grade 0.23 US Treasuries/Agencies US Treasuries/Agencies Derivatives Derivatives Supranational 0.52 Supranational 0.52 Cash & Cash Equivalents Cash & Cash Equivalents % 14% 32% 50% 68% 86% -40% -27% -14% -1% 12% 25% Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Sector Allocation figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. 9

10 Currency Allocation Currency Allocation Active Allocations vs. JP Morgan Global Government Bond Index AMERICAS US DOLLAR NON-USA AMER. Mexican Peso Brazilian Real Chilean Peso Colombian Peso Peru Nuevo Sol Canadian Dollar ASIA ASIA, NON-JAPAN Malaysian Ringgit Indonesian Rupiah Indian Rupee Sri Lanka Rupee Philippine Peso South Korean Won Australian Dollar JAPANESE YEN EUROPE/AFRICA PERIPHERY EUROPE/E. EUROPE Polish Zloty Danish Krone British Pound Swedish Krona EURO AMERICAS US DOLLAR NON-USA AMER. Mexican Peso Brazilian Real Chilean Peso Colombian Peso Peru Nuevo Sol Canadian Dollar ASIA ASIA, NON-JAPAN Malaysian Ringgit Indonesian Rupiah Indian Rupee Sri Lanka Rupee Philippine Peso South Korean Won Australian Dollar JAPANESE YEN EUROPE/AFRICA PERIPHERY EUROPE/E. EUROPE Polish Zloty Danish Krone British Pound Swedish Krona EURO % -6% 36% 78% 120% 162% -77% -38% 1% 40% 79% 118% Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Currency Allocation figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. 10

11 Quality Allocation vs. JP Morgan Global Government Bond Index AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- BB+ BB B+ CCC NR Cash Portfolio % Index % Over/Under AAA AA AA AA A A A BBB BBB BBB BB BB B CCC NR Cash % 20% 40% 60% 80% JP Morgan Global Government Bond Index Weightings as percent of total. Percentage may not equal 100% due to rounding. Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Ratings shown are assigned by one or more Nationally Recognized Statistical Rating Organizations ('NRSRO'), such as Standard & Poor's, Moody's and Fitch. The ratings are an indication of an issuer's creditworthiness and typically range from AAA or Aaa (highest) to D (lowest). When ratings from all three agencies are available, the middle rating is used; when two are available, the lowest rating is used; and when only one is available, that rating is used. Foreign government bonds without a specific rating are assigned the country rating provided by an NRSRO, if available. The NR category consists of rateable securities that have not been rated by an NRSRO. Cash includes equivalents, which may be rated. Derivatives are excluded from this breakdown. 11

12 Duration Breakdown vs. JP Morgan Global Government Bond Index 0 to 1 Year 1 to 2 Years 2 to 3 Years 3 to 5 Years 5 to 7 Years Portfolio % Index % Over/Under 0 to 1 Year to 2 Years to 3 Years to 5 Years to 7 Years to 10 Years to 15 Years to 20 Years to 30 Years Years Offset Derivatives to 10 Years 10 to 15 Years 15 to 20 Years 20 to 30 Years 30+ Years Offset Derivatives -12% 6% 24% 42% 60% JP Morgan Global Government Bond Index Information is historical and may not reflect current or future portfolio characteristics. All portfolio holdings are subject to change. Duration Breakdown figures reflect certain derivatives held in the portfolio (or their underlying reference assets) and may not total 100% or may be negative due to rounding, use of any derivatives, unsettled trades or other factors. 12

13 Duration Contribution by Currency vs. JP Morgan Global Government Bond Index Brazilian Real Indonesian Rupiah South Korean Won Indian Rupee Mexican Peso Colombian Peso Malaysian Ringgit Sri Lanka Rupee Polish Zloty Peru Nuevo Sol Philippine Peso Japanese Yen EURO British Pound Canadian Dollar Australian Dollar Danish Krone Swedish Krona US Dollar Portfolio (Yrs) Index (Yrs) Over/Under Brazilian Real Indonesian Rupiah South Korean Won Indian Rupee Mexican Peso Colombian Peso Malaysian Ringgit Sri Lanka Rupee Polish Zloty Peru Nuevo Sol Philippine Peso Japanese Yen EURO British Pound Canadian Dollar Australian Dollar Danish Krone Swedish Krona US Dollar Yrs JP Morgan Global Government Bond Index All portfolio holdings are subject to change. Duration Contribution statistics reflect certain derivatives held in the portfolio (or their underlying reference assets). Information is historical and may not reflect current or future portfolio characteristics. 13

14 Performance Risk Statistics - I (acc) USD Performance Risk Statistics 1 Yr 3 Yrs* 5 Yrs* Standard Deviation: - I (acc) USD JP Morgan Global Government Bond Index Tracking Error^^ Information Ratio^^ Alpha^^ Beta^^ Sharpe Ratio R-Squared^^ Correlation^^ Past performance is not an indicator or a guarantee of future performance. The base currency of a fund determines the risk-free rate index used in calculating certain risk statistics on this page. A fund that is based in USD uses the US T-Bill Index as the risk free rate return, a EUR-based fund uses the France Treasury Bills 3 Month Intraday Index, a GBP-based fund uses the UK Treasury Bills 3 Month Index, a JPY-based fund uses the Japan Financing Bill 3 Month Index, and an AUD-based fund uses the Australia T-Note 3 Month Index. ^^Measured against the JP Morgan Global Government Bond Index. *Annualised. 14

15 Important Disclosures All MSCI data is provided as is. The Fund described herein is not sponsored or endorsed by MSCI. In no event shall MSCI, its affiliates or any MSCI data provider have any liability of any kind in connection with the MSCI data or the Fund described herein. Copying or redistributing the MSCI data is strictly prohibited. This document has been prepared for circulation to persons reasonably believed to be within one of the professional investor exemptions contained in the Securities and Futures Ordinance or to whom this document may otherwise lawfully be communicated to give preliminary information about the investment propositions described herein. It is a confidential communication to, and solely for the use of, such persons and is not intended for general public distribution. This report does not constitute or form part of any offer for shares of any of the sub-funds of the Franklin Templeton Investment Funds ( FTIF ), or an invitation to apply for shares of any sub-fund, and subscription for shares in any sub-fund can only be made on the basis of the FTIF s most recent Prospectus. No shares of any sub-fund may be offered or sold to citizens or residents of the United States of America. An investment in a sub-fund which holds securities in emerging or largely unregulated securities markets may involve more risk than an investment in a sub-fund which holds investments in more developed markets. Currency fluctuations will affect the value of overseas investments. Past performance is no guarantee of future performance. The price of the shares of each sub-fund and the income received from each sub-fund may go down as well as up, and shareholders may not get back the full amount that they invested. Investment in any of the sub-funds involves risks which are described in the FTIF Prospectus. Persons considering an investment in any sub-fund are encouraged to consult their professional advisor before deciding to invest. Opinions of the investment manager are as of the date shown and are subject to change Franklin Templeton Investments. All rights reserved. 15